Polkadex, a decentralized order book built on Substrate, is gunning to be the latest project to secure a Polkadot parachain slot, as the 16th slot auction launches today, April 29, 2022. The auction, expected to run through the week till May 6, will pit the Polkadex protocol against late newcomer, Bifrost Finance. Between the two, the project that spends the most time leading with the highest amount of $DOT loaned will get the highest chance to win the auction on May 6th.
“Securing a parachain slot will go a long way towards fulfilling Polkadex’s mission of becoming the trading engine of the whole DeFi and Web 3,” said Gautham J, Polkadex’s CEO and Co-founder.
In January, Polkadex announced its bid to join the March auction, launching the Polkadex Crowdloan that allows users to borrow $DOT from the community to bid in the automated parachain auctions. So far, the Polkadex Crowdloan has witnessed 1,203 users borrow over 304,126 $DOT to participate in the auction, showing massive support for the decentralized order book.
Additionally, Polkadex has also partnered with a number of wallets and exchanges to make it easy for users to participate in the auction via the Crowdloan. Polkadex has partnered with DeFi platforms such as Parallel Finance and Equilibrium Finance, and centralized exchanges such as Kucoin and Kraken. As a matter of fact, over 60% of the contributions to the Crowdloan have been completed through partners with Parallel Finance seeing 47% of the contributions passing through it, while 6.5%, 4.5%, and 3.9% have been made via Kraken, Equilibrium, and KuCoin respectively.
“We’re incredibly honoured by the support for Polkadex and the Polkadex Crowdloan,” said Polkadex COO and Co-Founder Deepansh Singh. “We could not be more excited for Polkadex to support liquidity and assets from across the Polkadot ecosystem and its other parachains.”
Parachains, such as Polkadex’s, connect to Polkadot by leasing a slot on the main chain, the Relay chain, for up to 96 weeks for each auction, with an option to renew. These parachain slots are assigned to the projects through an auction, with the winning project locking up a bond in $DOT for the duration of the lease. These parachains allow projects on the mainchain to connect to other parachains and allow them to share information and transfer assets.
Polkadex securing a slot on the Polkadot network ensures that its Orderbook, DEX, and other products will support Polkadot-based tokens from across parachains. This means that Polkadot ecosystem tokens will be available on Polkadex, providing a cross-chain, non-custodial order book-based DEX with high liquidity and high-frequency trading.
Polkadex Crowdloan contributors to get very high rewards
According to Singh, it is high time for Polkadex to win a parachain slot in the upcoming auction to expedite the connection process to Polkadot and its assets. As alluded to, Polkadex launched their Crowdloan in January in a bid to push their luck in winning a slot auction. To incentivize their community members to participate in the Crowdloan and auctions, Polkadex introduced big rewards, rivalling previous winners in the auctions.
Polkadex is putting up to 10% of its total supply, about 2 million $PDEX tokens, as rewards for users who participate in its Crowdloan. The Crowdloan service aims to raise at least 1 million $DOT for the auction, which means that for every $DOT contributed, the contributor will receive 2 $PDEX. That makes the minimum rewards ratio for Polkadex in this batch of auctions over 10 times higher than what was offered in batch 2 back in January.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice